DJI Dà-Jiāng Innovations

Performance indicators

2017: Revenue growth of 80% to RMB18 billion

In 2017, DJI sales amounted to 18 billion yuan (about $2.7 billion at the weighted average exchange rate for 2017), which is 80% more than a year ago.

History

2024: US drone ban

In early September 2024, the House USA of Representatives passed a bill banning the operation of new drones the Chinese DJI companies. In addition, access to American communications infrastructure is limited to such drones.

The new rules, according to the South China Morning Post, are being introduced as part of the Counteracting CCP Drones Act: this is part of comprehensive measures against the PRC. The ban does not apply to DJI drones, which are already in use in the United States. The cap adds to the challenges facing DJI in one of its biggest markets after United States Department of Commerce it added the company to the blacklist in 2020 on national security grounds.

𝓲

Unsplash

DJI says the ban, based solely on the country of origin, "will not only undermine American interests, but also harm the industry that the US authorities intend to support." The company emphasizes that its drones are widely used by federal agencies, local law enforcement, first responders and small businesses in sectors such as real estate, agriculture and transportation.

In 2023, DJI spent $1.6 million on lobbying activities in the American market to enlist consumer support. However, U.S. officials have expressed concern that Beijing could exploit vulnerabilities in DJI software to access personal data and potentially exploit it for military purposes. As of September 2024, DJI, founded in 2006, is the world's largest supplier of consumer drones.^[1]

2022

Drone tracking data leak

DJI drone tracking data has been released in the United States. This became known on October 14, 2022.

The data allows you to disclose the home address and financial viability of the owner of the drone.

The Cybernews research team discovered open database with more than 90 million monitoring log entries drones generated by 66 different AeroScope DJI devices, with 53 devices located in the United States. Some are located in,,, and Qatar. Germany France Turkey

The DJI AeroScope device is an in-flight drone identification system that provides their flight path and serial numbers.

Journals include:

• drone position;
• model;
• Serial number
• position of the drone pilot;
• initial location (usually the take-off point).

There is no Personal Identifiable Information (PII) in the dataset. Experts have found more than 80,000 unique drone identifiers in the database.

DJI told Cybernews that the 54.5GB dataset found and hosted on AWS in the US is not their property. This means that the data was most likely disclosed by a DJI client using AeroScope devices to monitor airspace.

Since the server was hosted on AWS and was not assigned any domains, the researchers could not track the owner even using OSINT tools.

Cybernews informed DJI and AWS about the database leak so that they fix the problem as soon as possible and remove the attacker's ability to access the dataset. AWS said it had referred a "security issue to a specific customer for their awareness and potential mitigation^[2] has^[3] in the^[4].

Stopping the sale of products in Russia and Ukraine

On April 27, 2022, the world's largest drone manufacturer DJI announced the temporary termination of its activities in Russia and Ukraine so that the company's products would not be used for military operations.

DJI has denied the use of its drones for military purposes since the beginning of Russia's special operation in Ukraine, which started at the end of February 2022. According information to the agency, Bloomberg a lot Internet of video evidence in indicates the opposite. The conflict uses the entire product line from DJI, ranging from the DJI Mini 2 to the more advanced DJI Mavic 3 models.

DJI halted sales in Russia and Ukraine to stop drones being used for military action

{{quote 'DJI does not accept the use of our drones to harm people and we are temporarily suspending sales in these countries! We took this step to help ensure that neither side was able to use our drones in combat, "said Adam Lisberg, DJI's director of corporate communications in North America. }} Lisberg added to Al Jazeera that DJI did not take measures to occupy one of the parties to the conflict, but to show its corporate principles, not in word, but in deed.

DJI's announcement comes after the company denied claims in late March 2022 that the company was leaking Ukrainian military information to Russia. The company's management said their business had been subjected to what appeared to be a coordinated PR campaign making false allegations.

In late April 2022, DJI confirmed that its products are solely for civilian use, stating that its partners commit not to sell its products to the company to customers who clearly plan to use them for military purposes, or to help modify our products for military use. The Company engages with customers, partners and other stakeholders regarding the temporary suspension of business operations in the affected territories.^[5]

2021: New sanctions from the United States

On December 16, 2021, the US government imposed new sanctions against DJI, as well as seven other Chinese companies. Here's a list:

• Cloudwalk Technology Co (developer of facial recognition software);
• Dawning Information Industry Co (a manufacturer supercomputers providing cloud services in the Xinjiang Uygur Autonomous Region);
• Leon Technology Company Limited (a cloud firm that makes tracking systems);
• Megvii Technology Limited (image recognition and deep learning software company);
• Netposa Technologies Limited (the company that makes the video surveillance systems);
• SZDJI Technology Co (the company is a manufacturer of multicopters, microcontrollers, video equipment).

US imposes new sanctions on DJI

These eight organizations actively support biometric surveillance and tracking of ethnic and religious minorities in China, the predominantly Muslim Uighur minority in Xinjiang, according to the press service of the US Treasury Department.

The ministry added that with this decision, the government wanted to show the connection of private firms in the defense sector and observations with the government "to oppress members of ethnic and religious minorities."

The Ministry of Finance is still committed to ensuring that the US financial system and American investors do not support this activity, "said Deputy Finance Minister Brian Nelson, who oversees financial intelligence and the fight against terrorist financing.

The restrictions imposed by the authorities imply a ban on the purchase and sale of shares of these companies by the Americans. Previously, DJI in the United States was already imposed sanctions prohibiting companies to buy or use American technologies or components of American production. At the same time, DJI continued to sell its drones in America and does so by mid-December 2021.^[6]

2019

Getting on the sanctions list in the United States

In mid-December 2020, the US Department of Commerce imposed sanctions on the largest drone manufacturer DJI and effectively left it without American technology.

DJI was blacklisted, a member of which is denied access to American-made components without special permission. In addition, it will become much more difficult for stores in the United States to sell DJI products directly to consumers. Earlier, Huawei was included in this sanctions list.

The United States imposed sanctions on the largest drone manufacturer DJI and left it without American technology

As stated in the US Department of Commerce, DJI is blacklisted because the company "made possible large-scale human rights violations in China through" high-tech surveillance. " In particular, DJI drones, according to the US authorities, were used to monitor the Uighurs - whose Muslim ethnic group representatives live mainly in the western provinces of the PRC.

Earlier, the US Department of the Interior said it had landed all its 800 drones over concerns about Chinese espionage and cyber attacks, and the Justice Department banned the purchase of foreign-made drones with its funds on security grounds.

The Verge calls the inclusion of DJI in the "black" list a serious step by the Donald Trump administration towards banning the activities of Chinese technology companies in the United States. However, not all previous steps in this direction were effective. Thus, the US allies did not actively support the sanctions efforts of the United States against Huawei, and the WeChat and TikTok services, which Trump planned to block, are still available to American users, thanks to court decisions.

In addition to DJI, another 76 companies, including 60 Chinese, were blacklisted in the United States. Among them is the largest chip manufacturer SMIC in China.^[7]

US government agencies banned from purchasing drones from the largest manufacturer

In mid-September 2019, the United States passed a bill that prohibits the sale of drones from Chinese manufacturers, including DJI, to American state bodies. The Drone Safety Act was designed to prevent US agencies from relying on sophisticated technology said to be able to transmit crucial data to Beijing.

U.S. companies have accused Chinese drone maker DJI for years of undermining competition by trying to hijack the market and gain access to sensitive U.S. infrastructure data. In turn, DJI said lawmakers' push to block sales of foreign products in the U.S. is an affront to an emerging industry that favors comprehensive regulatory standards rather than bans by nationality.

US passes bill that bans drone sales from Chinese manufacturers including DJI

This bill could have far-reaching consequences given how rapidly the drone market is growing. Earlier, government agencies purchased large batches of DJI products, a concern in some quarters. Thus, the US Department of the Interior, whose task is to manage federal lands and natural resources, is one of the important partners of DJI and has more than 500 drones. About a dozen specialized drones are used by the Los Angeles Fire Department. Representatives of these divisions believe that the proposed ban will have a huge impact on public safety in general.

At the same time, DroneBase, whose network of more than 55,000 licensed pilots provides aerial photographs and data for commercial customers, is convinced of the effectiveness of existing information protection methods and believes that its confidential data is not shared with DJI.^[8]

US government agencies increase drone purchases by Chinese DJI by 500%

On July 11, 2019, it became known that American state bodies are actively increasing purchases of DJI drones, despite publicly expressed concerns about the safety of using equipment from Chinese companies.

At the RISE 2019 technology conference in Hong Kong, DJI Strategic Partnerships Director Jan Gasparic said that from 2015 to 2018, drone shipments to American departments responsible for protecting public safety increased by 500%.

U.S. ramps up DJI drone purchases despite fear of data transfers to China

The reason for this growth rate is that this technology has a progressive impact on the type of work they do, "he said.

In May 2019, CNN released a warning to the US Department of Homeland Security that American companies "need to be careful" if their data from unmanned aerial vehicles "are stored by the manufacturer or other third parties."

The US Federal Cyber ​ ​ Security Agency (Cybersecurity and Infrastructure Security Agency), created in 2018 in the structure of the US Department of Homeland Security, said that drones carry "potential risks to data used by organizations."

Although the warning did not mention specific names of UAV manufacturers, it was obvious that DJI was primarily meant. It is this company that controls about 80% of the North American drone market (Skylogic Research).

CNN reported that according to US intelligence agencies, Chinese-made drones transmit confidential information about users to developers, and they give it to the Chinese authorities. Amid these concerns and the dominance of DJI in the United States, rumors are increasingly emerging about sanctions against the Chinese vendor and a possible restriction on drone sales in the country.^[9]

US DHS: Drones could pose threat to US companies

On May 21, 2019, it became known that drones made in China can send important data to manufacturers in China, which, in turn, can transfer this data to the government. This warning was issued by the US Department of Homeland Security.

Thus, according to experts from the Agency for Cybersecurity and Infrastructure Security, which is part of the DHS, the use of Chinese drones threatens American companies and organizations. These devices allegedly "contain components that could compromise your data and place your information on servers that someone other than the manufacturer has access to."

Although the document does not specify specific brands of multicopters, 80% of sales of such devices in the United States and Canada are accounted for by the products of the Chinese DJI. At the same time, both US law enforcement agencies (especially local police) and infrastructure companies are increasingly relying on drones for their work.

Given the ongoing trade war between the United States and China, as well as the ban on cooperation between American companies with Chinese Huawei, the publication does not exclude that DJI may become the next victim of the conflict. In 2017^[10] a Chinese manufacturer have already banned the US military^[11].

Construction of a new headquarters

By the beginning of February 2019, DJI, whose products are sold in more than 100 countries, is building a new headquarters and has invited the famous British architectural studio Foster and Partners for this project. The company, which was originally a university project, has 14 thousand employees and 17 offices around the world.

Unlike many Chinese technology companies, DJI does not produce devices based on other people's designs, does not borrow technology from anyone, and is itself an innovator in the UAV market. For their services, the company was dubbed "Apple among drones."

At DJI Headquarters

DJI founder Wang Tao very rarely speaks at public events and gives media interviews.

Wang Tao has been fond of helicopters since childhood. He is very secretive and prefers to be focused on products, "DJI spokeswoman Natasha Gray told the South China Morning Post in early February 2019.

Focus on the corporate sector

In January, the South China Morning Post wrote that DJI leads the commercial drone market, controlling about 70% of sales. The global drone market is estimated at $9 billion, and the industrial equipment segment accounts for more than 50 percent of the share.

According to Bill Chen, partner development manager at DJI, the company is betting on the corporate sector and, in particular, on customers from the agricultural industry. As the world's population continues to grow, we must find more high-tech ways to meet the growing demand for food, Chen noted.

Losses of $150 million due to kickbacks to employees

On January 18, 2019, it became known that the world's largest manufacturer of consumer unmanned aerial vehicles DJI Technology revealed several cases of internal corruption. Due to bribes, the company missed more than 1 billion yuan ($150 million). The company discovered violations during regular inspections and passed the information to the authorities.

In 2018, the company underwent internal management reform. The main goal was to understand internal processes, as well as replace some leadership posts. It was discovered that there were cases of bribery of employees of the Research and Development Department and the Procurement and Quality Control Department in the supplier selection decision-making chain. Sales, Administration and Aftermarket employees were also convicted of using their positions for personal purposes.

DJI missed $150 million in 2018 due to employee kickbacks

At the beginning of 2019, the total number of employees at DJI Technology is approximately 14,000. 45 people are suspected of corruption and malfeasance. Among them - 26 employees participated in decision-making on supply issues and 19 people were engaged in sales, administration, design and production. The cases of 16 people were transferred to the court, and 29 employees were immediately dismissed.

In 2018, due to supply chain corruption, the average purchase price exceeded the permissible level by more than 20%. Many inexpensive materials were sold at prices 2-3 times higher than the market price. The price of expensive products was overestimated by 20-50%. Representatives of the company said that, according to the most conservative estimates, the losses from the revealed facts of corruption amount to more than 1 billion yuan. This figure is more than double the profit at the end of 2017. At the same time, the company said that the scale of corruption is much greater than expected, and this is only the tip of the iceberg. It is assumed that more than 100 people will be involved, and that the losses may exceed the amount indicated earlier.^[12][13]

2018: US police drone sales

In early June 2018, it became known that the American police began to purchase unmanned aerial vehicles (UAVs) with video surveillance from DJI . A project called Axon Air is being implemented in conjunction with stun gun manufacturer Axon.

At the first stage, the US police will supply a professional drone DJI Matrice 210, the cost of which starts at $8 thousand. The consumer UAV DJI Phantom 4 Pro with a price tag of $1300 will also be purchased.

As noted by The Verge, the partnership with Axon is beneficial to all participants. So, drones can be useful to police officers in search and rescue operations, and Axon's long-standing cooperation with law enforcement agencies (they purchase pistols with a paralyzing electric shock and chest cameras from the manufacturer) will allow DJI to use this developed channel for drone sales.

DJI Phantom drone

Law enforcement officers use drones in order to search and rescue people, recreate car accidents, for example, to resolve controversial situations in an accident, and observe large crowds of people. In addition, it is possible to carry out chases, monitor buildings, analyze crime scenes and collect evidence using new technologies.

DJI equipment will be connected to the Evidence.com cloud data management system, which will receive video from drone cameras. Car and chest DVRs of police officers are connected to the same service, and the total audience exceeds 200 thousand people involved in ensuring the safety of the population.

The press release notes that by June 2018, drones had saved about 130 people around the world, and this figure continues to increase. In the United States, more than 900 state institutions that protect public order use such aircraft.^[14]

2013-2015: Sales of the first low-cost drones

Attempts to improve the devices and reduce the cost of the final product in the period by 2013 led to the emergence of more massive models of DJI drones (costing less than $800), which caused a massive demand for them unexpected for the founder of the company and led to a sharp increase in sales, including among not specialists, but people who just want to buy a "flying camera." The company emphasized ease of use and control of drones, and this predetermined massive demand.

DJI drone

In 2013, the company introduced the flagship Phantom quadcopter model to the market, and in 2014 about 400 thousand copies of this product were sold.

Speaking to Forbes in 2015, DJI founder Wang Tao attributed his success to being simply smarter than others and trying to "keep his distance from the crowd."

2010: First Production Controllers

The first production controllers with which drones could fly along the route specified on the map using satellite navigation and return to the take-off point were released by DJI in 2010. Then they were very expensive - about $10 thousand. At that time, DJI employed about 10-20 people.

2006: Founding of DJI

DJI was founded in 2006 by an electronic engineering student at   Hong Kong Wang Tao University of Science and Technology. While living in a dormitory, he conducted experiments and experiences assembling drone prototypes that vaguely resembled future DJI devices.

Since childhood, Wang Tao was fond of aircraft modeling and dreamed of his own "aircraft" - a device that can fly and shoot what is happening on camera everywhere. The hobby for drones led to the creation of the first prototypes that Wang Tao sold for 6 thousand to companies that conducted experiments with drones.

Wang Tao established the company with Colin Gwynn, Li Zexiang Professor of Robotics, and classmates Liu Di and Swift Jiase.

Wang Tao did not do very well at school because he devoted a lot of time to aviation. Due to poor grades, he was not taken to MIT and Stanford University.

Notes